Use a financial proposal to try a rate or pay change and choose when it should take effect. Budget changes and compensation changes have separate permissions and approvals.

Before you begin

Budget proposals require the Manage workforce forecasts and Manage labor budgets permissions. Compensation proposals require the Manage workforce forecasts and Manage actual compensation permissions for all departments affected by the change.

Choose the financial measure

Measure Meaning
Authorized Budget The cost of approved position capacity using its Budget rates and applicable adjustments
Expected staffed cost The modeled cost of staffing the planned positions over the selected dates
Compensation Employee compensation under its recorded pay type and assignment rules

A Budget rate is not an employee’s pay. A proposed compensation amount is not a record of paid payroll. Delaying a hire does not automatically remove authorized Budget capacity.

Propose a rate

Open Proposed changes, choose the type of Budget or compensation change, and enter the target, amount, rate basis and effective date. Compensation also requires its pay type. Review the result before submitting the forecast.

Hourly rates use four decimal places. Annual monetary amounts use two. Annual salary scaled by FTE and actual contracted annual pay have different meanings; choose the type that matches the pay arrangement.

Rate changes for the same position, job code or assignment must have dates that do not overlap within a forecast, including changes in different review groups. End one change on or before the next change starts. Use separate forecasts to compare alternative rates for the same dates.

Propose department rate changes

Use Plan department rate changes to prepare individual Budget rate proposals for the selected department. Enter the effective date, percentage and reason.

A 3% change taking effect in July increases the selected rates once from that date. It does not mean an additional 3% increase every month. The forecast keeps a list of the affected positions for review. If department membership changes later, extra positions are not automatically added to that list.

Check each proposal’s end date. The increase does not automatically replace later approved rate changes. Add another dated proposal if you intend to change the rate after that date.

Review the selected positions, proposed amounts and exceptions before approval. If a rate is missing, add it to the approved information or enter a proposed rate. FTE Tree does not fill the gap with an average.

Replace or suppress an adjustment

Choose an adjustment change, then select replacement or suppression under Overlapping applications and identify the approved adjustment being replaced or suppressed. Review the target and effective dates. An additive adjustment leaves the existing adjustment in place.

A shared job code Budget rate can affect positions throughout the organization. Forecast it from the top-level department with Budget management access across the organization.

Review financial effects

Use the monthly comparison to see starting point values, proposed values and differences across matching dates. Use individual changes and position results to explain an amount.

Negative reductions and differences are allowed, while resulting absolute rates and costs remain at least zero. When a calculation reaches the zero minimum, its explanation identifies that limit. Read Understand adjustment calculations for worked examples.